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AAMS Notecards exam questions with complete solutions 2024.
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AAMS Notecards exam questions with complete solutions 2024.
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AAMS Notecards exam questions withcomplete solutions 2024
standard jdeviation j- jANS✓✓-Variability jaround jthe jmean; ja jmeasure jof jtotal
jrisk; jabsolute.
Beta j- jANS✓✓-Volatility jrelative jto ja jbenchmark; ja jmeasure jof jrelative jrisk; jnot
jstatic
What jdid jthe jBrinson jstudy jevaluate? j- jANS✓✓-Security jselection, jmarket
jtiming, jand jasset jallocation jpolicy.
What jconclusion jdid jthe jBrinson jstudy jreach? j- jANS✓✓-More jattention jshould
jbe jgiven jto jthe jasset jallocation jprocess jand jless jgiven jto jsecurities jselection
jand jmarket jtiming.
What's jthe jimportance jof jasset jallocation jin ja jclients jinvestment jstrategy? j-
jANS✓✓-Clients jmust jbe jactive jin jdetermining jtheir jasset jallocation jand jexplicit
jabout jobjectives, jrisk, jand jliquidity jover jthe jlong jterm.
T-Bills javerage j(geometric) jrate jof jreturns, jas jwell jas jinflation, jsince j1926 j-
jANS✓✓-3.3%
Long-term jU.S. jgovernment jbonds javerage j(geometric) jrate jof jreturns, jas jwell
jas jinflation, jsince j1926 j- jANS✓✓-5.5%
Long-term jcorporate jbonds javerage j(geometric) jrate jof jreturns, jas jwell jas
jinflation, jsince j1926 j- jANS✓✓-5.9%
Intermediate-term jU.S. jgovernment jbonds javerage j(geometric) jrate jof jreturns,
jas jwell jas jinflation, jsince j1926 j- jANS✓✓-5.1%
Large-company jstocks javerage j(geometric) jrate jof jreturns, jas jwell jas jinflation,
jsince j1926 j- jANS✓✓-10%
Small-company jstocks javerage j(geometric) jrate jof jreturns, jas jwell jas jinflation,
jsince j1926 j- jANS✓✓-11.8%
, Inflation javerage j(geometric) jrate jof jreturns, jas jwell jas jinflation, jsince j1926 j-
jANS✓✓-2.9%
Define jstrategic jasset jallocation j- jANS✓✓-The jidentification jof jthe jasset jmix
jthat jwill jprovide jthe joptimal jbalance jbetween jexpected jrisk jand jreturn jfor ja
jlong-term jinvestment jhorizon.
How jis jstrategic jasset jallocation jmaintained? j- jANS✓✓-With jperiodic
jrebalancing jby jrepositioning jhigher jperforming jassets jinto jlower jperforming
jassets.
Define jtactical jasset jallocation j- jANS✓✓-This jis jthe juse jof jsecurities jselection,
jsector jrotation, jand jmarket jtiming jto jperiodically jrevise jthe jasset jmix jof ja
jportfolio.
Define jcore/satellite jasset jallocation j- jANS✓✓-This japproach jinvolves ja
jcombination jof jstrategic jand jtactical jasset jallocation jenabled jby jdividing ja
jportfolio jinto ja jcore jholding jof jstocks jand jbonds, joften jbroad jbased, jlow jcost
jindex jmutual jfunds jor jetfs, jand ja jsatellite jportion.
What jare jthe jcharacteristics jof jcommon jstock? j- jANS✓✓-Shareholders jreceive
jdividends jon ja jpro jrata jbasis, jvote jon jthe jelection jof jcorporate jboard
jmembers, jare jresidual jowners jof jthe jfirm j(meaning jtheir jinterests jare
jsubordinate jto jcreditors jand jbond jholders), jand jthe jshares jhave jno jmaturity
What jare jthe jsources jof jrisk jfor jcommon jstock? j- jANS✓✓-A jdownturn jin
jeconomic jgrowth, jhigh jinterest jrates, jloss jof jproduct jor jservice
jcompetitiveness, jfailures jof jmanagement, jand jgovernment jaction
What jare jthe jcharacteristics jof jpreferred jstock? j- jANS✓✓-Dividends jare jusually
jfixed, jqualified jand jnot jtax-deductible jto jthe jpaying jcorporation, jthey're jpaid
jahead jof jcommon jshares, jlimited jvoting jrights, jand jare jgenerally j70% jtax jfree
jto jowning jcorporations jand jcan jhave jparticipating, jcumulative, jcallable, jand
jconvertible jfeatures
What jare jthe jsources jof jrisk jfor jpreferred jstock? j- jANS✓✓-Interest jrate jrisk,
jpurchasing jpower jrisk, jbusiness jrisk, jand jreinvestment jrisk
What jare jthe jcharacteristics jof jbonds? j- jANS✓✓-Issued jby jcorporation, jfederal
jand jstate jgovernments jand jtheir jagencies jand jmunicipalities, ja jpromise jto
jrepay jthe jprincipal jat ja jspecified jdate jin jthe jfuture, jto jmake jperiodic jinterest
jrates jat jspecified jdates, jusually jissued jat jpar jvalue, jcan jprovide jtaxable jor jtax-
free jincome, jand jrated jinvestment jor jnon jinvestment jgrade
What jis jthe jtotal jreturn jof jbonds jmade jup jof? j- jANS✓✓-Interest jand jany
jcapital jgains jor jloss
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